- War-risk premiums increase overnight.
- Coverage exclusions expand.
- Deductibles rise.
- Some carriers temporarily suspend coverage for high-risk regions.
We saw this after 9/11. We saw it during the Gulf Wars. We saw it when Houthi attacks disrupted Red Sea shipping.
If hostilities with Iran threaten commercial shipping lanes, insurers may impose “additional war risk premiums” (AWRPs) on vessels entering affected zones. That cost gets passed down the supply chain — to energy companies, manufacturers, retailers, and ultimately, consumers.
Higher shipping insurance = higher transportation costs = higher inflation.
It’s a cascading effect.
Energy Insurance Markets Face Volatility
Energy infrastructure is a prime target in modern conflict.
Oil fields, refineries, pipelines, LNG terminals, and offshore drilling platforms are insured through highly specialized global markets, often reinsured in London or Bermuda.
If Iran retaliates by targeting regional energy assets — or if proxy actors do so — insurers may:
